A market niche is a homogeneous group with common characteristics— that is, all the people who have a need for the newly proposed product or service. When describing this niche, the writer should address the bases of customer purchase decisions: price, quality, service, personal contacts, or some combination of these factors.
Next, a list of potential customers who have expressed interest in the product or service— together with an explanation for their interest— should be included. If it is an existing business, the current principal customers should be identified and the sales trend should be discussed. It is important to describe the overall potential of the market. Sales projections should be made for at least three years, and the major factors affecting market growth ( industry trends, socioeconomic trends, governmental policy, and population shifts) should be discussed. A review of previous market trends should be included, and any differences between past and projected annual growth rates should be explained. The sources of all data and methods used to make projections should be indicated. Then, if any major customers are willing to make purchase commitments, they should be identified, and the extent of those commitments should be indicated. On the basis of the product or service advantages, the market size and trends, the customers, and the sales trends in prior years, the writer should estimate market share and sales in units and dollars for each of the next three years. The growth of the company’s sales and its estimated market share should be related to the growth of the industry and the customer base.
A market niche is a homogeneous group with common characteristics— that is, all the people who have a need for the newly proposed product or service. When describing this niche, the writer should address the bases of customer purchase decisions: price, quality, service, personal contacts, or some combination of these factors.
Next, a list of potential customers who have expressed interest in the product or service— together with an explanation for their interest— should be included. If it is an existing business, the current principal customers should be identified and the sales trend should be discussed. It is important to describe the overall potential of the market. Sales projections should be made for at least three years, and the major factors affecting market growth ( industry trends, socioeconomic trends, governmental policy, and population shifts) should be discussed. A review of previous market trends should be included, and any differences between past and projected annual growth rates should be explained. The sources of all data and methods used to make projections should be indicated. Then, if any major customers are willing to make purchase commitments, they should be identified, and the extent of those commitments should be indicated. On the basis of the product or service advantages, the market size and trends, the customers, and the sales trends in prior years, the writer should estimate market share and sales in units and dollars for each of the next three years. The growth of the company’s sales and its estimated market share should be related to the growth of the industry and the customer base.
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